Spotlight

Indian equity markets are expected to remain under pressure as elevated crude oil prices and persistent uncertainty over the U.S.-Iran conflict weigh on market sentiment. U.S. President Donald Trump said the U.S. would win the conflict “very soon,” while officials are communicating with mediators seeking to end the conflict. However, significant uncertainty remains around the negotiations, keeping concerns over potential supply disruptions through the Strait of Hormuz elevated.  

Crude oil prices remain elevated but relatively stable, with WTI trading around $93 a barrel and Brent above $105, keeping broader macroeconomic concerns firmly in focus. On the domestic front, stronger-than-expected IIP growth in August, led by gains in manufacturing and electricity output, is likely to reinforce confidence in the underlying domestic growth momentum

Asian markets are trading lower in early trade, with the Nikkei 225 and KOSPI down over 0.5%.  Global bond yields also remain elevated, keeping financial conditions tight and adding to concerns over the outlook for interest rates. The combination of geopolitical uncertainty, elevated crude oil prices and higher bond yields is likely to keep Indian markets volatile and maintain a cautious near-term bias.

Technical View

Nifty 50

Nifty 50 witnessed significant selling pressure in the previous session, decisively breaking below the crucial psychological level of 23,000. The index continues to maintain a weak technical structure, characterized by a series of lower highs and lower lows. On the upside, 22,900–23,000 is likely to act as the immediate resistance zone, with 23,000 now emerging as a stronger resistance level following the recent breakdown. A sustained move above 23,000 would be required to signal a meaningful improvement in the near-term structure.

On the downside, 22,700 remains the crucial support zone. A decisive break below this level could intensify selling pressure and expose the index to the next support around 22,500. Overall, the near-term technical outlook remains bearish. Although oversold conditions could trigger intermittent pullback attempts, the broader structure is likely to remain under pressure as long as the index trades below 23,000.

Bank Nifty

Bank Nifty underperformed in the previous session and continues to trade below key short- and long-term moving averages, reinforcing the prevailing bearish technical structure. On the upside, the 54,800–55,000 zone, which previously acted as a key support area, is now likely to serve as the immediate resistance band. A sustained move above this zone could improve near-term momentum and support a recovery toward 55,300–55,500.

On the downside, immediate support is placed at 54,400–54,200, followed by the crucial 54,000–53,800 zone. A decisive break below 54,000 could accelerate the ongoing corrective move and expose the index to lower levels. Overall, the near-term technical outlook for Bank Nifty remains bearish. A sustained move above 55,100 would be required to provide meaningful signs of stabilization, while continued trading below this level would keep the index vulnerable to further downside.